TORONTO – The chief executive of Shoppers Drug Mart Corp. says he’s confident that a $12.4-billion takeover by Loblaw, which shareholders voted to accept on Thursday, will also win the approval of the federal competition agency.

“Our networks are very complementary, as opposed to overlapping, and therefore don’t raise any competitive issues,” Shoppers CEO Domenic Pilla said following a shareholders’ meeting in Toronto on Thursday.

“But clearly we’ll have to submit that to the bureau and make sure we work with them so that they come to the same conclusion,”

Pilla said the pharmacy chain (TSX:SC) is working with Loblaw, Canada’s largest grocery retailer, to prepare an application that will be submitted to the Competition Bureau in the next few weeks. The bureau has the ability to block deals that could result in substantially less competition.

“Our combined market shares are below what would be typical thresholds for the bureau,” said Pilla. “But they have to do their work and we will collaborate with them very closely and provide them the data they need.”

The deal was approved by 99.9 per cent of the votes cast at the meeting or in advance.

The deal, announced in July, will keep the Shoppers brand name in place and allow it to operate as separate division of Loblaw Companies Ltd. (TSX:L).

It may also see some of the stores that Shoppers owns folded into Loblaw’s real estate investment trust, Choice Properties REIT (TSX:CHP.UN), said Pilla.

“We will work closely with that REIT where it makes sense,” said Pilla, but he noted that Shoppers leases most of its stores, so only a small number of properties would be involved.

The deal was supported by the boards of both companies but required the approval by two-thirds of Shoppers shareholders.

The transaction also required the approval of a majority of Loblaw shareholders as the number of common shares to be issued in the deal exceeds 25 per cent. However, controlling shareholder George Weston Ltd. has already provided written consent in favour of the deal to the Toronto Stock Exchange, which satisfies the approval requirements from Loblaw’s end.

Overall, Loblaw is offering $33.18 in cash plus about six-tenths of a Loblaw share for each Shoppers Drug Mart common share.

The proposal valued Shoppers Drug Mart common shares at $61.54 per share based on Loblaw’s share price before it was announced — a more than a 29 per cent premium to Shoppers’ average trading price prior to the announcement.

Holders of Shoppers stock have the option of receiving $61.54 cash or, alternatively, 1.2941 Loblaw common shares plus one cent cash, subject to caps on the total number of shares and total amount of cash.

The amount of cash is capped at $6.7 billion and the number of shares is capped at 119.9 million, the companies said at the time.

Assuming Shoppers investors opt for the maximum amount of Loblaw equity, they would own about 29 per cent of the combined company.

The board of directors of Shoppers (TSX:SC) has unanimously supported the deal and urged shareholders to vote in favour of it as well.

The proposed merger, announced in July, will keep the Shoppers brand name in place and allow it to operate as separate division of Loblaw (TSX:L).

The deal requires the approval of at least two-thirds of votes cast at the meeting.

The transaction also requires the approval of a majority of Loblaw shareholders as the number of common shares to be issued in the deal exceeds 25 per cent.

However, George Weston Ltd. has already provided written consent in favour of the deal to the Toronto Stock Exchange, which satisfies the approval requirements from Loblaw’s end.

Overall, Loblaw is offering $33.18 in cash plus about six-tenths of a Loblaw share for each Shoppers Drug Mart common share.

The proposal valued Shoppers Drug Mart common shares at $61.54 per share based on Loblaw’s share price before it was announced — a more than a 29 per cent premium to Shoppers’ average trading price prior to the announcement.

Holders of Shoppers stock have the option of receiving $61.54 cash or, alternatively, 1.2941 Loblaw common shares plus one cent cash, subject to caps on the total number of shares and total amount of cash.

The amount of cash is capped at $6.7 billion and the number of shares is capped at 119.9 million, the companies said at the time.

Assuming Shoppers investors opt for the maximum amount of Loblaw equity, they would own about 29 per cent of the combined company.

Good news

Andy Clark/Reuters

Political progress

Among the new faces joining Prime Minister Stephen Harper’s cabinet are four “strong and capable” female MPs: Shelly Glover, Kellie Leitch, Candice Bergen and Michelle Rempel, who become, respectively, the heritage and labour ministers, and ministers of state for social development and western economic diversification. The appointments come on the heels of a recent British study alleging women in many industrial nations, including Canada, know far less about foreign affairs than men. Some have blamed this on a dearth of female politicians. Change couldn’t come soon enough.

Hungry for more

Loblaw Co. Ltd.’s $12.4-billion-deal to buy Shoppers Drug Mart Corp. has raised concerns about the decline in the level of competition in the Canadian retail landscape. But by joining forces, the country’s biggest supermarket and drugstore chains (which will continue to operate under separate banners) will be better positioned to compete against American behemoths such as Target and Wal-Mart. With three big, powerful players all battling for business, consumers can only win. In this case, bigger is better.

A clean slate

The Alberta government plans to use flood mapping to determine where homeowners should rebuild after this summer’s deluge. It will not offer future disaster-relief assistance to residents remaining in dangerous flood zones, but the province will “respect the personal choice” of individuals to live where they please. Meanwhile, the flood may have exposed more than just questionable urban planning. Scientists are expecting there will be discoveries of dinosaur fossils and other artifacts in areas newly made bare by the waters.

The stars of space

Canadian astronaut Chris Hadfield’s zeal for teaching from outer space appears to have spread. Karen Nyberg, an American astronaut aboard the International Space Station, posted a video of herself washing her hair. After squirting water and shampoo onto her scalp, Nyberg combs her long blond hair, which stands on end. Nyberg notes that, as her hair dries, the evaporated moisture will become drinking water. Bottoms up.

Bad news

Press Eye Ltd / Rex Features

Pushing the limits

Two of the world’s fastest men, Jamaican Asafa Powell, a former 100-m world-record holder, and American 100-m champion Tyson Gay, have tested positive for a banned substance. Powell’s teammate Sherone Simpson also tested positive. Their agent blamed Canadian trainer Christopher Xuereb, saying he had given the Jamaicans a number of supplements and injections that may have triggered the positive results. Gay, meanwhile, explained, “I basically put my trust in someone and I was let down.” The real victims here, of course—the only victims, in fact—are the athletes still trying to compete drug-free. And it’s beginning to look as though they’re in the minority.

Pray for safe passage

The annual Muslim pilgrimage to Mecca will be complicated this year by a deadly virus spreading across Saudi Arabia. Authorities are advising pilgrims to wear masks and urging the elderly and those with chronic conditions to avoid the trek. The Middle East Respiratory Syndrome (MERS) coronavirus has killed more than 40 people, and experts are worried an epidemic might erupt that’s similar to SARS, the disease that caused hundreds of deaths in 2003.

Break and entre

A group of about 30 Greenpeace activists managed this week to break into a nuclear power station in France, where the reliance on aging nuclear facilities has become a tense political issue. The protesters managed to hang a banner on the wall of one reactor building, and it took the police several hours to round up and arrest all the intruders. The group said its aim was to show security flaws at the plant. Mission accomplished.

All work and no fun

In a new study, British researchers used a smartphone application to measure levels of happiness and well-being among workers. They found that people ranked being sick in bed as the only activity worse than being on the job. Some workplaces, however, are clearly more stressful than others. In recent months, three executives have left struggling BlackBerry, and more departures may be in the works. The company has reportedly warned managers that they must meet ambitious sales targets or risk losing their jobs.

Under the terms of the agreement, Shoppers will keep its brand name and operate as a separate division of Loblaw.

“I have long believed that the next chapter for growth at Loblaw should be based in a vision that combined health, wellness and nutrition. Loblaw combining with Shoppers Drug Mart is the ultimate expression of that vision,” said Galen Weston, executive chairman of Loblaw, in a conference call with analysts Monday.

“Not only does this transaction make compelling financial sense, it establishes a truly innovative platform for the future,” Weston said.

Loblaw is offering $33.18 in cash plus about six-tenths of a Loblaw share for each Shoppers Drug Mart common share.

Using the Friday closing price, the offer is worth $61.54 per Shoppers Drug Mart common share — about 29 per cent above the recent average trading price for the Shoppers stock — with about 54 per cent of the price paid in cash.

Shoppers shares were up $12.93 or about 27 per cent at $61.33, while Loblaw shares were up $4.25 or nearly nine per cent at $51.80 on the Toronto Stock Exchange.

Weston and other executives of the two companies said they anticipate cross marketing of each company’s products — specifically mentioning the Loblaw President Choice and Blue Menu brands and Shopper’s Life brands — as well as services such as their loyalty points programs.

If the combination had been completed last year, the business would have had about $42 billion of revenue and $1 billion of free cash flow. The companies expect to produce $300 million in cost savings after three years, without store closures.

Canadian retailers have faced increasing competition from large U.S. chains, such as Target, which began to roll out its stores across the country earlier this year. It joins Walmart and Costco and as well as domestic retailers such as Sobeys that offer a combination of merchandise, pharmacy products and groceries.

The deal will require approval by at least two-thirds of the votes case by Shoppers Drug Mart shareholders at a special meeting expected to take place in September.

A majority of Loblaw shareholders must also approve the deal because of the number of shares being issued.

Holders of Shoppers stock have the option of receiving $61.54 cash or, alternatively, 1.2941 Loblaw common shares plus one cents cash, subject to caps on the total number of shares and total amount of cash. The amount of cash is capped at $6.7 billion and the number of shares is capped at 119.9 million.

Assuming Shoppers investors opt for the maximum amount of Loblaw equity, they would own about 29 per cent of the combined company.

Domenic Pilla, president and CEO of Shoppers Drug Mart, said the deal provides “significant and immediate value” for Shoppers shareholders.

“For our associate-owners and employees, who are a valued part of the equation, it provides the opportunity to pursue rewarding careers as we grow together. And for our customers, it provides more locations with an enhanced mix of products and offerings that contribute to the good health of Canadians.”

Pilla and the Loblaw executives told analysts that they don’t anticipate any store closings as a result of this transaction and they endorsed the current use of associate owners at Shoppers Drug Mart.

“We really value the contribution that (the associate owners) make and the creativity, entrepreneurship that they bring and they stewardship they bring to our store level. So we’re not anticipating making any changes there,” Pilla told analysts.

Weston added: “We operate a very powerful franchise business that is similar in many respects to the associate model that Shoppers Drug Mart operates and we believe wholeheartedly in its effectiveness, so we think we understand it well.”

In a related move, George Weston Ltd. (TSX:WN) will subscribe for 10.5 million additional shares of Loblaw — its main subsidiary — valued at $500 million. Weston will pay $47.55, the closing price for Loblaw shares on Friday.

Proceeds from the offering will be used to pay a portion of the Shoppers purchase. George Weston will control about 46 per cent of the Loblaw voting rights after the acquisition.

From Drake's Shoppers Drug Mark shot music video "Started From the Bottom"

1. After Drake won the Grammy Award for Best Rap Album on Sunday night he released a video for his new single, Started From the Bottom. Much of the video was filmed at a Shoppers Drug Mart in Binbrook, Ont, according to the Hamilton Spectator, and it also features his mom standing outside his childhood home in Toronto, reports Canada.com. Why do we care? My guess is because Canadians love to see Canadian things in videos they think Americans will watch. For more Grammy coverage see Macleans.ca.

2. City of Toronto inspectors have found what they say is an illegal rooming house near U of T Scarborough and Centennial College. Officials told the Toronto Star it was probably full of foreign students. Eleven people were living in rooms in the majorly renovated house. Real estate agent Yixuan (Jessica) Wang has been accused of arranging the leases. The city says there are 120 active files stemming from complaints over suspected illegal properties in Scarborough where there is just one 765-bed student residence (at UTSC) for nearly 15,000 post-secondary students.

3. An editorial in the McGill Daily student newspaper says McGill is “too white.” It starts off like this: “In 2011, 14.2 per cent of McGill University staff self-identified as visible minorities and 23.7 per cent as ethnic minorities. Currently, there is one person of colour amongst the 25 senior administrators.” It goes on to say “students of colour [feel] isolated and under-served,” that “curricula is too focused on traditional Western thought,” and that “classrooms and conferences [are] subtly hostile and unsafe spaces.” They fail to mention that the most recent Census showed visible minorities make up 8.8 per cent of Quebec and 16.5 per cent of Montreal, suggesting McGill’s staff is almost as diverse as the city and twice as diverse as the province. They also leave out numbers on the diversity of the student population, which you’d think they might include.

4. Students at the University of Windsor likely won’t vote for their University of Windsor Students’ Alliance representatives until April because the student union broke an important policy. Meanwhile, that same UWSA’s board decided last week to request $600,000 from the capital budget to purchase the former Ali Babba’s Grill House & Eatery off campus. UWSA general manager Dale Coffin thinks that was a hasty decision. “Someone has got to stand up and say, ‘How did we go from we’re going to look into this seven days ago, to we want $600,000?’,” he told The Lance. The UWSA’s Thirsty Scholar pub shut last year after it racked up $1.2 million in debt. Mohammad Akbar, vice-president university affairs for the UWSA admits they have a “history of being terrible at running things” but he still supports the sudden purchase. “Even if it doesn’t become a pub, it’s still something that students will find very valuable,” he says. You sure about that, Akbar?

5. A new poll in Quebec—where the Maple Spring protests against a tuition increase helped topple a government—shows two-thirds of those polled want tuition fees to increase, either by the annual cost of living (50 per cent of respondents) or by more than that (17 per cent). Only 11 per cent want a freeze and just 18 per cent want no fees at all. There is a huge difference of opinion by age group. Among those aged 65 or older, 90 per cent want fees increased. Among those aged 18 to 24, 39 per cent are in favour of a freeze. This Léger Marketing poll, reported by the Montreal Gazette, sheds light on why Premier Pauline Marois isn’t ruling out cost of living indexation despite a youth wing pushing for a freeze.

]]>http://www.macleans.ca/education/uniandcollege/mcgill-called-too-white-drake-an-illegal-rooming-house/feed/0Good news … bad newshttp://www.macleans.ca/news/good-news-13/
http://www.macleans.ca/news/good-news-13/#commentsSun, 11 Nov 2012 10:20:01 +0000macleans.cahttp://www2.macleans.ca/?p=312462On the case…
With the province still reeling from the tragic suicide of bullied teenager Amanda Todd, the RCMP in British Columbia has responded with its own emotional YouTube video.

With the province still reeling from the tragic suicide of bullied teenager Amanda Todd, the RCMP in British Columbia has responded with its own emotional YouTube video. Entitled “It Gets Better,” the nine-minute clip includes candid interviews with 20 Mounties discussing their experiences growing up gay—the ridicule, the confusion and the good days that eventually came. “I can absolutely tell you,” says one officer, “that it gets better.” Adds another: “Things get way better.” As public service announcements go, it doesn’t get much better.

Enriched relationship

After a two-year impasse, Ottawa has settled a key trade deal that will allow Canadian firms to sell nuclear technology to India. During his state visit to New Delhi, Stephen Harper announced that long-standing concerns about monitoring India’s use of Canadian uranium have been resolved. The feds had every reason to be cautious; in 1976, India used Canadian nuclear materials to test its first nuclear bomb. But any fallout from that dispute is long settled, and Canada now believes India—desperate for new sources of energy and overseen by the UN’s International Atomic Energy Agency—will act responsibly.

’ Tis not quite the season

Shoppers Drug Mart faced the music when it decided to shut off the Christmas carols last week. Some Canadians assumed the pharmacy chain had bowed to political correctness and ditched Yuletide hymns altogether. But the truth is completely rational: some customers said it’s a tad too early for Jingle Bells, and Shoppers agreed. The really good news? When the seasonal songs do return, the choices could include new offerings from the Backstreet Boys, Cee Lo Green and reunited Grease stars John Travolta and Olivia Newton-John.

A big study

A British UFO organization admits that the whole idea of alien spaceships could soon be “a dead idea.” But Bigfoot? That myth is alive and well—so much so that a professor at Idaho State University has announced plans to float a homemade blimp over western U.S. mountain ranges in search of the creature. All he needs now is a very big donation ($300,000) to build the dirigible.

BAD NEWS

More inconvenient truths

If hurricane Sandy wasn’t enough to put global warming back on the political agenda, this should be: according to an alarming new study conducted by Environment Canada, the spring snow pack in the Arctic is disappearing at a much faster rate than anticipated, even quicker than the well-documented loss of summer sea ice. In other news, a poll showed that 48 per cent of registered Republican voters in the U.S. believe in climate change; 68 per cent believe that a person can be possessed by demons.

Nothing honourable about it

The testimony unfolding in a Toronto courtroom has become all too familiar: Peer Khairi, an Afghan immigrant, is accused of brutally stabbing his wife because she shamed the family by embracing Canadian culture. In Pakistan, the latest “honour killing” case is even more horrifying. A husband and wife admitted, in a jailhouse interview, that they poured acid on their 15-year-old daughter because she had the gall to look at a boy. “She said: ‘I didn’t do it on purpose. I won’t look again,’ ” her father said. “By then I had already thrown the acid. It was her destiny to die this way.”

Caged and enraged

It was an awful week for animal theme parks. At the Greater Vancouver Zoo, a giraffe was found dead in its barn—the third to die in the past year. In Pittsburgh, a two-year-old boy was mauled to death after falling into a pen of African painted dogs. And after weeks of nasty publicity, MarineLand in Niagara Falls, Ont., is threatening to sue a former trainer for more than $1 million for telling a reporter that the park’s lone killer whale was bleeding from its tail.

CFL soap opera

The Edmonton Eskimos sacked their general manager, Eric Tillman, on the eve of the playoffs for “no specific reason.” No doubt it had something to do with trading the team’s star quarterback, Ricky Ray, to the Toronto Argonauts—the very team the slumping Eskies will face in the East Division semifinal. But the unluckiest guy in the CFL has to be Saskatchewan Roughrider Ismaël Bamba. With his passport stuck in New York due to hurricane Sandy, the wide receiver didn’t have photo ID to board the plane to Vancouver. Bamba had to make the 20-hour trip in the team’s equipment van. A rough ride indeed.

]]>http://www.macleans.ca/news/good-news-13/feed/0Waiting for Target: Canadian retailers retrenchhttp://www.macleans.ca/economy/business/retailers-retrench/
http://www.macleans.ca/economy/business/retailers-retrench/#commentsTue, 30 Oct 2012 14:23:01 +0000Mika Rekaihttp://www2.macleans.ca/?p=306876Retail companies brace for the U.S. juggernaut to set up shop north of the border

A dark cloud has been forming over the Canadian retail landscape this month. Hudson’s Bay Co., Shoppers Drug Mart and Loblaw Companies Ltd. have all announced major job cuts. HBC said it will be laying off 210 employees as it moves its information-services department from Toronto to Missouri. Shoppers Drug Mart cut 80 jobs from its head and regional offices. Last week, Loblaw said it is cutting 700 head-office jobs as it looks to streamline operations.

One of the causes: the U.S. retail juggernaut Target Corp., which is opening 189 locations across Canada and which will offer stiff competition in the pharmacy, clothing and grocery businesses. With more retailers looking to expand their offerings and lower prices (Loblaw has already been struggling with Wal-Mart Stores Inc.’s expansion into groceries), it’s getting harder for companies to distinguish themselves, says Kenneth Wong, a marketing professor at Queen’s University. But Wong suggests that the magnitude of the layoffs “suggests there is also something larger at play” than just bracing for Target, or the rising costs associated with drug reforms that Shoppers cited as the reason for its cuts. He says a slowing economy is the main culprit. And that’s bad news for Canadian retailers and U.S. invaders alike.

]]>http://www.macleans.ca/economy/business/retailers-retrench/feed/2Canada’s 10 most trusted brandshttp://www.macleans.ca/society/life/canadas-10-most-trusted-brands/
http://www.macleans.ca/society/life/canadas-10-most-trusted-brands/#commentsTue, 14 Aug 2012 13:40:11 +0000Blog of Listshttp://www2.macleans.ca/?p=280889Tim Hortons is number two on the list. Who's the lucky number one?

*From a survey of consumer attitudes toward companies based on, among other things, their corporate citizenship, leadership, performance, and products and services.Source: Canadian Business (2011)

Have you ever wondered which cities have the most bars, smokers, absentee workers and people searching for love? What about how Canada compares to the world in terms of the size of its military, the size of our houses and the number of cars we own? The nswers to all those questions, and many more, can be found in the first ever Maclean’s Book of Lists.

Buy your copy of the Maclean’s Book of Lists at the newsstand or order online now.

]]>http://www.macleans.ca/society/life/canadas-10-most-trusted-brands/feed/5In defence of the corporate jethttp://www.macleans.ca/economy/business/in-defence-of-the-corporate-jet/
http://www.macleans.ca/economy/business/in-defence-of-the-corporate-jet/#commentsFri, 06 Feb 2009 22:04:15 +0000Colin Campbellhttp://blog.macleans.ca/?p=34129The optics may be terrible in these tough times, but flying the company plane isn’t always the evil it’s made out to be

In the corporate jet business, there are three people who are especially unpopular these days: the heads of the Detroit Three automakers. When the trio jumped on their corporate planes and flew to Washington late last year, they turned the business jet from being a nice perk for well-off executives into a symbol of corporate excess. How, people screamed, could these businessmen display such excess when the entire purpose if their trip was to beg for a public bailout? The “delicious irony,” as one congressman said, was too much.

The CEOs elected to drive to Washington on their next trip, but the damage was done. Even today, the outrage over corporate aircraft burns brightly. Last week, U.S. President Barack Obama chastised Citigroup for its plans to buy a new $50 million jet after accepting $45 billion in government bailout money. His administration is now talking about rules that could force companies that receive federal money to relinquish their private jets. This week, Bank of America Corp. said it will sell a number of its corporate aircraft.

But while there are some ethical dilemmas at play, not all corporate jet travel is bad or unjustified, say ethics and business experts. In some cases, company boards (like the one at General Motors) actually require that their CEOs fly private jets for security reasons. The optics may be terrible in these recessionary times, but flying the corporate jet isn’t always the evil it’s made out to be. “Whether there’s a problem depends on the circumstances,” says Leonard Brooks, a professor of business ethics at the University of Toronto. When jets are used for business purposes and they free up time for executives to work, or improve their state of being when they arrive somewhere to do business, the costs may well be justified, he says. In an interview last month, GM’s vice chairman Bob Lutz was unapologetic, saying that he’d still elect to fly to Washington via private jet, even if it was to ask for tax dollars. (He was not one of the executives who made the now infamous trip in November.) Imagine, he argued, a haggard executive showing up late to a congressional hearing because he’d been bumped off his Northwest Airlines flight.

For a lot of companies, the benefits of the corporate aircraft far outweigh the costs. Wal-Mart, for instance, uses private jets, and is “probably the most penny-pinching, efficient company on the planet,” says Chris MacDonald an ethics expert and visiting professor at the Keck Graduate Institute in Claremont, Cal. Even companies that have taken public money aren’t necessarily engaging in unethical or inappropriate behavior by flying corporate jets, argues MacDonald. “If the decision to have an executive jet was the right decision last year when the company was beholden only to its shareholders, what would make it the case that it’s suddenly an unwise decision?” asks MacDonald. “At a well-governed corporation, those sorts of moves would be carefully thought out and cost-benefit analyses would be done.”

The problem, argues Brooks, is when company jets are co-opted for personal use. That appears to be the case at Nortel. Leading up to its bankruptcy filing, the company’s CEO, Mike Zafirovski, routinely flew in the company jet from Toronto to an airport that’s just a short drive from his home in Chicago, reported the Globe and Mail. Nortel has said the plane has been grounded and is up for sale. Those in the corporate jet business argue that, generally, the planes have become easy scapegoats. “It’s a little bit knee-jerk,” says Adam Keller, the president of Chartright Air Group, a Toronto-based firm that charters private jets to companies. Flying a private jet is expensive, but not nearly as bad as many think. For a company to fly its Challenger jet from Toronto to, say, Atlanta (a four-hour flight), it would cost roughly $7,000 round trip, he says. That voyage on Air Canada, for two people, can cost upwards of $4,000 (coach, not business class). And with security and airport check-ins would take considerably longer. Time is an important consideration. If a CEO makes $10 million a year, that’s $5,000 an hour. Would shareholders really like to see their CEO waste seven hours driving from Detroit to Washington?

Still, in today’s economic climate, the use of jets is shrinking. Business at Chartright is down about 30 per cent, says David Shaver, the company’s director of business development. In an informal poll of Canada’s 60 largest public companies, almost half told Maclean’s they do not have private jets. Thomson Reuters and Teck Cominco don’t have one, nor does Shoppers Drug Mart and Penn West Energy Trust. In fact, many companies boast that their executives fly commercial, just like the rest of us. “Our culture is very cost focused and corporate jets are expensive to fly and maintain,” said Husky Energy spokesman Graham White, in an email. “Occasionally for short flights in Western Canada we will employ local charters, otherwise all Husky employees (including executives) fly commercial.” Sun Life Financial has never had a company jet, “leased, owned or otherwise,” said spokesperson Kathleen Killen via email. “We have been deliberate about this. All of our executives, CEO included, fly commercial at all times.”

Biovail has a jet, but the company says it is currently up for sale. Rogers Communications also has one, but says it is no longer in use. TransAlta Corp has a jet, but leases it out when it’s not in use. It says the costs are negligible.

Ultimately, much of the public outrage surrounding private jets is probably misplaced, says MacDonald, the business ethicist. Yes, in some cases, the jets are extravagances, but most are not. The fact that GM executives are in some cases required to fly on the corporate jet for security reasons says a lot, he argues. “Obama flies in style too, for good reason. Nobody expects the president to fly coach. GM security isn’t quite national security, but it’s not a trivial matter.”

So how many Shoppers Optimum points do you get for buying a $1,060 bottle of eye cream? Now consumers can find out. Shoppers Drug Mart has just launched an upscale new chain called Murale that will not only offer exclusive cosmetics, such as pricey $1,000 lotions from Natura Bissé, but will pamper customers with a luxury in-store spa.

Murale launched with a 7,000-sq.-foot store in Ottawa in November, and last month it opened a 8,200-sq.-foot location in Montreal. Both feature pristine white interiors, curved walls and boutique-like displays. In addition to luxury brands and niche products, Murale employs “beauty masters” with at least three years of “artistry” experience. The stores also house a spa where shoppers can undergo everything from antioxidant treatments to cellulite removal to facials. The philosophy, says spokesperson Tammy Smitham, is that “a customer’s basket size increases following a treatment.”

The plan for Murale was hatched over a year ago, when analysis showed an untapped market for exclusive cosmetics. “We truly felt that there was a void in the Canadian marketplace,” says Smitham. But just how successful the venture will be in the throes of a nasty recession remains to be seen.

Hard numbers won’t be available until the company reports its earnings in mid-February, but with five to seven more locations planned for 2009, Smitham insists “performance in both Ottawa and Montreal has exceeded our expectations.” Indeed, according to Rotman School of Management professor David Dunne, the desire to indulge in small luxuries in tough times actually makes cosmetics relatively recession-proof. That said, the financial collapse touched “many people at the higher end of the economic spectrum,” says Dunne. “It’s not a slam dunk by any means.”

What economic slowdown? As retailers across North America struggle to lure customers into existing stores, Shoppers Drug Mart, Canada’s largest pharmacy chain, has just released plans for a huge expansion. Last week, Shoppers announced it will open another 50 outlets over the next five years. This is the latest step in an aggressive push that has made the chain a rare bright spot in a dismal retail landscape. But is its particular mix of prescriptions, food and lipstick enough to fend off the bears?

Shoppers is a dramatically different drugstore than it was a decade ago. Under former CEO Glenn Murphy (now in charge of Gap Inc.), the company branched out into high-end cosmetics and groceries. The stores were redesigned and the company expanded from Central Canada to the West. Those moves helped give Shoppers the strongest bottom line in the industry—it now boasts a profit margin of more than six per cent, even as many other drugstore chains are in the red.

Since taking over in early 2007, CEO Jurgen Schreiber has kept his foot on the gas. Later this year the company will launch a new chain of beauty stores called Murale. And Shoppers aims to add to its 1,110 stores by pushing deeper into Western Canada. Interestingly, the plan is not to create new pharmacies, but to buy existing independent drug stores and put them in bigger new digs averaging 10,000 sq. feet in size.

Robert Gibson, an analyst with Octagon Capital in Toronto, says the strategy makes sense because there’s no shortage of real estate, but trained pharmacists with a long list of customers are hard to come by. The bonus is the larger stores allow Shoppers to sell more of the higher-margin cosmetics and beauty products that boost profits. It’s a strategy Gibson says should do well in a recession.

“I hate to say this, but I’m getting older, and older people need more drugs,” he says. “I don’t want to say they’re recession-proof. But there are some things you have to buy, like food, gas and drugs—while that new pair of shoes can wait.”